Europe faces Q4 jet fuel supply deficit even as South Korea becomes latest big supplier

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Published21 SEP 26 - 09:09 Reading time minutes

“The widening spread between the Asian and European benchmarks is making it more profitable to export barrels into Europe.” — James Noel-Beswick, Head of Commodities at Sparta Commodities

Expert: James Noel-Beswick (Head of Commodities, Sparta)
Publication: Reuters
Market Focus: Jet Fuel, Middle Distillates, Refining Arbitrage
Geographies: Europe, South Korea/Asia

In an analysis for Reuters, Sparta’s Head of Commodities, James Noel-Beswick, flags that Europe’s jet fuel imports will keep flowing from distant suppliers as the region remains structurally short. Energy Aspects forecasts a Q4 European jet fuel deficit of 510,000 bpd, contrasting with surpluses of 18,000 bpd in the US and 419,000 bpd in Asia-Pacific, while South Korean shipments to Europe have surged to 129,000 bpd, a near four-year high. Noel-Beswick notes the widening Asia-Europe price spread is what’s making these long-haul export economics work — with ARA jet stocks already at a seven-year low, the arb window is unlikely to close soon. Traders should watch the Asia-Europe jet crack spread and ARA inventory data for signs of continued long-haul supply pull.

[Read June Goh’s full commentary in Reuters]

Topics Distillate

Author

James Noel-Beswick

Head of Commodities

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